As expected, investment banking performance was weak as both equity and debt underwriting revenues declined, while advisory fees improved. Additionally, equity and fixed income trading was dismal, leading to decline in trading revenues. Further, card fees and service charges on deposits decreased.

Moreover, provision for credit losses increased during the reported quarter.

Overall performance of the company’s business segments, in terms of net income generation, was decent. All segments, except Global Markets and Others, witnessed a rise in net income.

Lower Trading, Investment Banking Hurt Revenues, Expenses Down

Net revenues amounted to $23 billion, which marginally lagged the Zacks Consensus Estimate of $23.2 billion. Also, the reported figure was down slightly on a year-over-year basis.

BofA’s efforts to realign its balance sheet and focus on core operations will likely support bottom-line growth. Also, the bank’s efforts to digitize operations and branch expansion plans are expected to support its financials. In addition, it is well poised to benefit from loan growth.

However, investment banking performance was disappointing. This, along with dismal trading, is expected to have an adverse impact on the company’s revenues.